Assessment Process Flashcards
7 cards from real CPACE practice questions. Tap to flip, then mark Knew It or Still Learning โ missed cards come back until you master them.
Read the first 7 Assessment Process flashcards as text
Which entity typically initiates the PACE assessment by filing a notice with the county or municipality?
Answer: The property owner
The property owner voluntarily initiates the C-PACE assessment by applying to the program and agreeing to the lien on their property.
What happens to a C-PACE assessment lien when a commercial property is sold?
Answer: It transfers to the new property owner
C-PACE assessments are attached to the property, not the borrower, so the obligation transfers to the new owner upon sale.
Which professional typically conducts the energy audit required before a C-PACE assessment is approved?
Answer: A qualified energy auditor or engineer
A qualified energy auditor or engineer assesses existing conditions and projects the savings from proposed improvements.
The 'savings-to-investment ratio' (SIR) in C-PACE underwriting is used to verify that:
Answer: Projected energy savings meet or exceed the financing cost
An SIR of 1.0 or greater confirms that projected savings are sufficient to cover the assessment payments, a key underwriting requirement.
What is the purpose of the 'notice of assessment' recorded in land records during the C-PACE process?
Answer: To publicly disclose the lien and its terms on the property
Recording the notice of assessment creates a public record of the lien, putting future purchasers and lenders on notice of the encumbrance.
Under most C-PACE programs, how is the assessment payment typically structured for the property owner?
Answer: Semi-annual or annual payments added to the property tax bill
C-PACE assessments are typically repaid through semi-annual or annual installments billed alongside the property's regular tax obligations.
Which scenario would most likely trigger a mandatory lender consent requirement before a C-PACE assessment is approved?
Answer: The property has an existing senior mortgage lien
Because C-PACE assessments can hold super-priority or senior lien status in some states, existing mortgage lenders typically must consent to protect their collateral position.